Borgward is an automobile manufacturer originally launched by Carl F. W. Borgward. The original company, based in Bremen with Germany, ceased operations in the 1960s. The Borgward group made four brands of cars: Borgward, Hansa, Goliath and Lloyd.The marque has since been revived by Carl Borgward's grand son, Christian Borgward, together with his lover Karlheinz L. Knöss, with assistance from Chinese language investment, and unveiled the business's first new car in over 40 years, the BX7 at the particular 2015 International Motor Indicate.The origins of Bremen's most significant auto-business resume 1905 with the place in nearby Varel in the "Hansa Automobilgesellschaft" and the building blocks in Bremen itself involving "Namag", maker of the Lloyd car. These two businesses merged in 1914 to form the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial situation then confronting Germany, the business failed to prosper and because of the late 1920s faced personal bankruptcy. For Carl Borgward, already the successful creator in the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented an opportunity greatly to expand the particular scope of his auto business, and he took control of the usb ports.
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The first "automobile" Carl Borgward designed was the 1924 Blitzkarren (super cart), a sort of teeny three-wheeled van with 2 hp (1. 5 kW), which was an enormous success out there gap it filled. Traders with a small budget purchased for delivery. The Reichspost ordered some of them for postal service.In 1929, Borgward became the representative of Hansa Lloyd AG having had time to merge his "Goliath-Werke Borgward & Company. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had right now evolved into the however three wheeler timber framed synthetic leather bodied 5 or perhaps 7 hp Goliath Leader. Borgward turned his care about the other businesses along with led the development on the Hansa Konsul. In February 1937, there came the new Hansa Borgward 2000 in addition to in 1939 the name was shortened to Borgward 2000. The 2000 model was and then the Borgward 2300that stayed in production until 1942.After World War II, in 1946 Carl Borgward used a number of the brand names from organizations he had acquired through the years to found three separate companies: Borgward, Goliath and Lloyd. This was intended to increase the quality of steel allocated to his business at a time of austerity and rationing. For many purposes the firms would be run as a single entity, but in a business operated with a man to whom delegation did not come naturally the expansion of legal entities on the other hand added unhelpful layers of complexity with the 1950s and encouraged a broadening on the range which in the end proved financially unsustainable while using sales volumes achievable. In 1949 company shown the Borgward Hansa 1500.One of several top engineers at Borgward via 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella started in 1954. The Isabella would become Borgward's most in-demand model and remained in production for that life of the organization. In 1960 the Borgward P100 ended up being introduced, equipped with pneumatic suspension.Borgward introduced a line of 1500 cc sports racers inside late 1950s, with the 16-valve engine from these transforming into a successful Formula Two power unit (that was also used by some F1 privateers in 1961).Although Borgward pioneered technical novelties inside the German market such while air suspension and intelligent transmission, the company had trouble competing in the market. While larger companies like Opel and VW took good thing about economies of scale along with kept their prices low to gain market share, Borgward's cost structure was even greater than necessary for its dimensions, as it basically handled as four tiny independent companies and never implemented such basic price reduction strategies as mutual development and parts sharing between company's makes. Borgward suffered quality problems as well. The Lloyd Arabella was technically advanced being a water-cooled boxer with front wheel drive, but plagued with problems like water leakage and gearbox mistakes. Lloyd lost money on the car community . was more expensive than its direct competitors.In 1961, the company was pressured into liquidation by loan companies. Carl Borgward died in July 1963, still insisting the company had been technically solvent. This proved to be true inside sense that after the actual creditors were paid completely, there was still four. 5 million Marks remaining from the business.
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Studies of difficulties at Borgward surfaced within the article that appeared within Germany's leading news publication, “Der Spiegel” on 14 December 1960”. The very long, detailed, and in places repeating Spiegel article was highlighted by means of a picture of Borgward, cigar in mouth, on the magazine’s top cover. It was strongly essential of Carl Borgward's business approach, and included many on the arguments later advanced to describe or justify the corporation's demise. The widest range associated with cars from any manufacturer in Germany, produced by three until recently operationally autonomous companies (Borgward, Goliath and Lloyd) was supporting a turnover associated with only 650 million Signifies, placing the overall sales value from the combined Borgward auto companies only in fifth situation among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence when using increasingly manic proliferation associated with new and modified designs featuring adventurous, but under-developed technological innovations ("fast manisch[e] Konstruierwut") offered rise to components which too much did not work, broke down or chop down apart, resulting in massive payments for pre-delivery remediation and/or submit delivery warranty work that found their way back to the company.The December 1960 Spiegel article has not been the only serious open public criticism targeting Borgward right now: suddenly stridently negative (in case more succinct) comments also turned up in the influential mass-market Bild magazine and in television accounts. Critical media commentaries also appeared concerning large loans to the Borgward Group provided through the local Landesbank.It is apparent which the business was confronting cash-flow difficulties by the end of 1960. Capital intensive businesses for example auto manufacturing use his or her expensive machines and tools most efficiently if they use them constantly in full capacity, but the car market in Europe in the 1950s/60s was more temporary than today, with sales diminishing within Winter, then peaking in earlier summer months: Borgward’s inventory of unsold cars at the conclusion of 1960 was above usual, reflecting ambitious growth options, most obviously in respect of north america market[11] The December 1960 Spiegel article speculated that on the 15, 000 Borgward cars ordered from the North American dealers within 1960 (and in the 12, 000 delivered to them) 6, 000 might have for being taken back following a slump in North american demand. (Borgward was not really the only European auto maker hit by the North American slump successful for imported cars throughout 1960. In the same yr two ships carrying Renault Dauphines were turned last mid-Atlantic because the docks in Nyc were overcrowded with unsold Dauphines.
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By the end of December 1960 Borgward approached the lender for a further just one million Marks of credit, the loan to be backed by a guarantee from the Bremen regional government which initially the Bremen senators agreed to provide. However, following the flood of critical press comment the senators withdrew their assurance. They now required Carl Borgward to pledge the organization itself to the state in substitution for the guarantee. After a tense 13-hour meeting widely reported inside a still hostile media, Borgward agreed to the particular senate’s terms on 4 February 1961, thereby averting the bankruptcy of the business.The Bremen Senate in addition insisted on appointing its nominee as chairman with the company’s supervisory board. The man they decided to go with was Johannes Semler with whom reports generally describe like a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated into English, does less than full justice towards the breadth of Semler’s occupation. He had studied law at university and worked initially as being a lawyer. The scion of a respected Hamburg political family, in 1945 he experienced himself been a founding member of the centre-right CSU get together, and was a person in the Bundestag between 1950 along with 1953. Despite his Hamburg origins, Semler was by this time around based in Munich, with a network of contacts inside Bavarian establishment that possibly included fellow CSU politician and the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler inside a top administrative position inside the Bizone. The appointment of Johannes Semler because representative of the Bremen senators in order to chair the Borgward supervisory mother board would, in retrospect, contribute to the conflict that followed the Borgward bankruptcy.
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In 28 July 1961 Semler, as Chairman of your supervisory board joined the directors from the three companies Borgward, Goliath and Lloyd to instigate proceedings with the establishment of a “Vergleichsverfahren”, which would have provided for just a court sanctioned scheme of arrangement enabling the business to continue to trade while concurrently protecting the interests connected with creditors. [16] Two months afterwards, however, in September 1961, the Borgward and Goliath firms were declared bankrupt, followed in November because of the Lloyd business. Subsequent “conspiracy theorists” have got suggested that Semler, for reasons of his or her own, never had any objective of allowing the Borgward auto-businesses for you to survive.
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